SPP seeks to calm greenhouse concerns
Date: 03-Sep-02
Country: AUSTRALIA
Author: Michelle Nichols
The company, which is the target of a long-running campaign by Greenpeace, said the A$800 million strategy aims to ensure that it achieves lower net greenhouse gas emissions than conventional oil through offsets such as planting forests.
"Given the concerns about increasing man-made greenhouse gas emissions, we recognise it is our responsibility as a producer of fossil fuels to reduce our emissions," SSP managing director Jim McFarland said in a statement.
SPP said its proposed operation to produce oil from shale would produce 24-37 percent more greenhouse gases than normal oil production, although environmental groups say the figure is greater.
SPP's strategy involved building a low greenhouse gas producing ethanol plant, and planting 116 million trees to create forests that will capture 121 million tonnes of carbon dioxide.
It would also invest in co-generation and other efficiency improvements to minimise the amount of energy used to produce each barrel of oil from shale rock.
"Our plan has been fully costed, is practical and provides a commercial return. It has been independently reviewed and is Kyoto compliant," SPP chairman Campbell Anderson said.
GREENPEACE THREAT
The future of the company's Stuart Oil Shale project has been threatened by Greenpeace, which claims the production plant produces high greenhouse gas emissions, dioxin releases, air and water pollution and affected the health of local people.
Earlier this year, activists protested at about 100 retail service station sites of oil refiner and marketer Caltex Australia Ltd after the company bought a cargo of 50,300 barrels of naptha produced at the Stuart Oil Shale plant.
Caltex has ruled out any further purchases, along with Royal Dutch/Shell and BP Plc . Although Mobil Oil Australia Pty Ltd, a unit of ExxonMobil Corp , has signed a long-term naptha sales contract with SPP.
"The main focus has to be on not emitting the greenhouse gases in the first place, which means replacing fossil fuels with clean renewable energy and fuels, not developing new ones like oil shale," Greenpeace said in a statement yesterday.
SPP has rights to more than 17 billion barrels of oil in 10 shale deposits in central Queensland. The company plans to expand the Stuart Shale Oil plant to a fully commercial operation with the capability of producing up to 200,000 barrels of oil per day.
Shares in SPP closed down 5.8 percent at 49 cents.
